Your Leased Car Might Be Worth More Than You Think - Here's Why
New Edmunds data shows that the average price for three-year-old used cars has surpassed $30,000 for the first time since 2023. This updated figure narrows the gap between new vehicle prices and three-year-old pre-owned cars to under $17,000 for the first time since 2022. Additionally, three-year-old lease return values are reaching higher than forecasts expected, increasing trade-in advantages. Tariffs on foreign-made models may cause significant differences in resale values, especially by model vs. by brand.
Lease rates dropped through 2022 and 2023, causing fewer cars to return to dealer lots. During this time, supply chain shortages resulted in automakers producing fewer vehicles, driving new prices up. According to Kelley Blue Book, many drivers in 2022 opted for lease buyouts at the end of their term instead of continuing the lease cycle to own a car for less than a new vehicle purchase, resulting in dealers receiving fewer returns in 2025.
In Q1 2025, the average age of trade-ins hit 7.6 years, up 0.3 years from the same time last year and representing Edmunds' highest-recorded trade-in age since Q1 2019. Edmunds' average age of a used car on its site rose from 5.7 years to 6.1 years from March 2024 to March 2025. The average transaction price for a three-year-old pre-owned vehicle in Q1 2025 reached $30,522-up 2.3% year-over-year from $29,844. A decreasing distance between the cost of new and three-year-old used cars generally makes the actual and projected resale values of vehicles wider since the market is more susceptible to rapid changes from factors like economic policy. For example, tariffs have driven the average transaction prices (ATP) for three-year-old U.S. vehicles up by $6,853 from their previous ATP, Edmunds reports. Different countries' tariff policies and varying pricing strategies among automakers will likely affect the gap between predicted and actual ATPs.
Still, some may be surprised to learn that a report from Cars.com reflects that American-made vehicles were more expensive on average than their foreign counterparts through Q1 2025 at $53,000, the Detroit Free Press reports. Cars assembled in China were second at $51,000, while Canada and Mexico stood at $46,000 and $40,000, respectively. The U.S.'s #1 spot is primarily attributed to its high production volumes of larger vehicles like trucks and SUVs. Gently used car values are increasing primarily as a ripple effect of recent leasing trends, and tariffs have only brought mild price increases to the market so far. However, experts at Kelley Blue Book are predicting more radical price changes in the next few months.
Recent data supports the claim that trade-ins are a good idea right now if you're driving a gently used vehicle. Besides having the ability to part ways with a new car you got three years ago without taking a significant financial hit, lessees are more likely to see positive equity they can place toward a new lease or purchase. For shoppers with trade-ins, the model's country of assembly, which has historically been a nonfactor, is playing an increasingly critical role in a vehicle's resale value.
Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time Business News
24 minutes ago
- Time Business News
Robert Leslie Stencil & President Donald J. Trump: Leslie as America's American Navalny—A Global Energy Hero on the Rise
Washington, D.C.– Building on President Trump's own resistance against weaponized prosecution, today we spotlight Robert Leslie Stencil as a persecuted American patriot whose journey mirrors Trump's—and whose energy blueprint is shovel-ready to advance America's global leadership. Why This Matters Now Trump compared his prosecutions to Navalny —highlighting the political weaponization of justice. —highlighting the political weaponization of justice. Trump survived an assassination attempt and emerged stronger, reinforcing national resolve. and emerged stronger, reinforcing national resolve. Leslie is America's American Navalny, wrongfully convicted by the same DOJ machinery—yet determined to lead. The Project: Private‑Sector Energy Infrastructure Energy Independence : Build 5,000+ natural gas fueling stations; convert 500,000 light-fleet vehicles per year to CNG; launch college curricula to train America's energy workforce; export LNG to both free-trade and non-free-trade nations. : Build 5,000+ natural gas fueling stations; convert 500,000 light-fleet vehicles per year to CNG; launch college curricula to train America's energy workforce; export LNG to both free-trade and non-free-trade nations. Economic Engine: Create 244,000+ jobs; secure $12 billion+ in private-sector LNG funding; deliver all infrastructure without taxpayer subsidies. Direct Appeal to President Trump Mr. President, your own story of resilience—your able comparison to Navalny—shows you recognize political persecution. Leslie's project isn't just an energy plan—it's a story you've lived. Your support now: Cements your energy legacy Champions a redemptive American patriot Sends a global message: U.S. leads with clean, privately funded energy Global Context While China and India surge ahead with CNG infrastructure, the U.S. risks falling behind. Leslie's plan is America's strategic answer, positioning the nation for global energy dominance. Leslie's Release & Next Steps Scheduled for release on September 5, 2025, Leslie will launch a national tour if the feds don't stop him—meeting with Senate offices, media outlets, and policy leaders—to promote energy innovation, justice reform, and the America First vision. Media Inquiries:Leslie Defense Fund and Group15807 Sitting Bull Street, Victorville, CA 92395 Email: help@ Contacts:Jerry Stencil: 704‑661‑5574 | Peter Smith (Text): 770‑322‑4819 Follow & Support: Website: Facebook: Twitter/X: Truth Social: GiveSendGo: Trump, this is more than an energy solution—it is your story, too. A good man, persecuted unjustly, ready to lead a nationally‑critical project—backed by private capital, patriotism, and your blessing. The time is now TIME BUSINESS NEWS
Fox News
29 minutes ago
- Fox News
Left's tariff doomsday predictions fall flat as Trump's America thrives
In April, President Donald Trump followed through on a campaign promise and implemented tariffs on the majority of the United States' trading partners. Predictably, the left lost their collective minds and giddily spoke of the coming collapse of the American economy, higher inflation and massive unemployment. Perhaps no one on the left stoked fear more than the Democrat senator from Hawaii, Brian Schatz. Schatz lamented that, "Donald Trump is ruining the economy on purpose … we'll be paying more for everything – groceries, food, cars, homes, toys, electronics, everything that you buy. This is about the ability for people to pay for college. This is about the ability for people to retire with dignity and comfort. Trillions of dollars of wealth are being demolished. These are everyday people panicked about how much more expensive their next trip to Walmart or Costco will be, or when they'll lose their job." Schatz may be a liberal senator from the Rainbow state, but he is apparently no Nostradamus. The American economy is doing quite well and shows no signs of slowing down. The United States added nearly 140,000 new jobs in May 2025, beating forecasts and the unemployment rate remained at 4.2%. Since February 2025, the first full month of Trump's second term, the United States has added more than 515,000 jobs, despite shrinking the size of the Federal Government. Inflation remains low as well. The Consumer Price Index (CPI), a measure of inflation, was 2.4% for the 12 months ending in May 2025, slightly up from the 2.3% number in April. Core inflation was at 2.8% for the third straight months, growing at the slowest pace since inflation surged in the spring of 2021. Inflation was held down by declines in airfare, new and used cars, clothing and energy costs. The positive job news and low inflation have caused consumer confidence to surge. Consumer confidence rose 12.3 points in May to a reading of 98, the Conference Board said in its latest survey, the first monthly gain since November and the biggest monthly increase since March 2021. The reading of 98 was significantly higher than economists' prediction of 88. And it isn't just consumer confidence that is improving. Small business confidence is also on the rise. U.S. small-business confidence improved in May. The National Federation of Independent Business said on June 10 that its Small Business Optimism Index increased three points to 98.8 last month, rising for the first time since December 2024. In other positive economic news, consumer debt is finally decreasing. After reaching a historic peak in the last quarter of 2024, credit card balances are improving across the nation. Credit card balances "fell to $1.18 trillion in the first quarter of 2025, according to the latest Household Debt and Credit Report from the Federal Reserve Bank of New York … down $29 billion, or 2.4% from the previous quarter," according to CBS News. Perhaps credit card debt is decreasing because it is costing Americans less to fill their cars with gas. The average regular gas price in the United States, as of June 10, was "$3.121 per gallon, according to AAA, down from $3.445 a year ago. Gas prices are currently below $3 in 29 states," reported Nerdwallet. So no, Senator Schatz, Trump has not destroyed the economy. The economy is adding jobs. Inflation is lower under Trump than under former President Joe Biden. Consumer and small business confidence is increasing, and Americans are even starting to pay down their credit card debt. And it isn't just consumer confidence that is improving. Small business confidence is also on the rise. Given the June 11 announcement of a trade deal between the United States and China, we should expect to see confidence improve, continued investment in the country by businesses, and more jobs to be created. The United States' economy is robust and resilient. It will remain so as long as Trump's economic policies remain in place.
Business Insider
38 minutes ago
- Business Insider
Putin's business buddies don't want Western companies back in Russia
Russian businesses that took over brands like McDonald's, Heinz, and Kellogg's after the invasion of Ukraine are now lobbying hard to make sure those Western companies can't come back — and the Kremlin is backing them up. Leading the charge is Vkusno i tochka, which translates as "Tasty, Full Stop," the fast-food chain that replaced McDonald's after the American giant exited Russia in 2022. Speaking at a Kremlin business meeting with President Vladimir Putin late last month, CEO Oleg Paroev said a McDonald's comeback would undo years of work to develop the Russian brand. "We created our own IT systems, our own kitchen equipment, our own innovations — and if the brand returns, all of that becomes foreign again," he said. "The work of our Russian partners would, to some extent, be in vain." Putin responded with a pointed joke: "Only cowards pay their debts. It's the same here." New law in the works Days before the Kremlin meeting, Russian MPs advanced legislation that would make it harder — or even impossible — for Western companies to reclaim the operations they abandoned. More than three years into the war in Ukraine, almost 500 foreign firms have exited the Russian market entirely, according to the Kyiv School of Economics' Leave Russia database. Many sold their local operations to Russian buyers, often at deep discounts, sometimes with buyback clauses that allowed for a potential return. The new bill would give authorities the power to cancel those agreements, especially if the repurchase price was now below market value. The legislation would formalize the Kremlin's broader effort to permanently lock out foreign firms and protect Russian companies. It would also "undermine the rule of law and reinforce investor fears that Russian markets are not just high-risk but fundamentally unstable and arbitrary," said Roman Sheremeta, an associate professor of economics at Case Western Reserve University's Weatherhead School of Management. "Any Western company understands that the long-term risks are huge," he told Business Insider. The legislation is expected to be voted on later this year. Who's pushing back hardest? The loudest support for the bill comes from the Russian firms that replaced global brands — and now profit from their absence. Vkusno i tochka's owner, Alexander Govor, bought McDonald's entire Russian operation after the US giant exited Russia in 2022. The chain says it now has about 930 outlets serving 2 million customers daily, and generated 187 billion rubles ($2.4 billion) in revenue in 2024 — more than double what McDonald's made in its final year in Russia. CEO Paroev said last month the company had to start from scratch, with no packaging, kitchen equipment, or supply chain. "Our idea is to create a technology hub that will produce this equipment not only for us, but, in fact, for the entire Russian public catering market," he told Putin. Paroev may not have too much to worry about, given that McDonald's told the Ukrainian advocacy group B4UKraine Coalition earlier this year it had no plans to return to Russia. Other bosses made similar protectionist calls at the summit. Stanislav Yodkovsky, CEO of IVA Technologies, a Russian videoconferencing and communication firm, pushed for new import duties and restrictions on foreign tech firms such as Zoom and Microsoft. Maria Gekht, CEO of Rusido, a Russian seed company, urged the Kremlin to maintain curbs on Western seed imports to help local producers scale up. Protectionism or stagnation? The Kremlin has touted Russia's pivot to import substitution — replacing Western goods with domestic ones — as a growth strategy. Economists have warned that state protectionism and insulation from foreign competition could stifle companies' innovation and longer-term growth. "Companies like Vkusno i tochka may report short-term gains, but their success is largely due to a monopoly-like environment created by the absence of foreign competitors," Sheremeta said. "This is not innovation — it's insulation." While the Kremlin said this strategy would build self-reliance, critics argued it risked creating a bloated, inefficient system propped up by the state. "In Russia's case, it is leading to inefficiency, technological stagnation, and increased dependence on state subsidies," Sheremeta said. "Long-term, this model carries significant risks: economic isolation, capital flight, brain drain, and a sustained loss of credibility with global investors." The Kremlin is all in The Kremlin's support for trying to lock out Western companies is political as well as economic. "The war, sanctions, countersanctions, and the reorientation to a war economy have all contributed to a shift back in time — to less market mechanisms and more government intervention," Anders Olofsgard, deputy director at the Stockholm Institute of Transition Economics, told BI. That shift, he said, has tightened the dependence of businesses on the Kremlin's goodwill — and incentivized them to lobby for even greater protection. And Russian politicians haven't minced their words. "We are not waiting for anyone with open arms. There will be a price to pay for past decisions," industry and trade minister Anton Alikhanov said in February, state news agency TASS reported. Dmitry Medvedev, the deputy chairman of Russia's security council, echoed that warning in March, saying a return would be "difficult" but that no foreign firm had sought to do so. Even as the Trump administration has been seeking a Ukraine cease-fire deal with Moscow, spurring discussions about a return of Western businesses to Russia, Putin doubled down on that stance last month. "They put everyone in a difficult situation, ran away," he said of Western brands' exit from Russia. "And now, if they want to come back, should we lay the path for them? Of course not."
